public service loan forgiveness and income-based repayment

Public Service Loan Forgivenessand

Income-Based Repayment

March 2011

Five Steps to Forgiveness

Make the right kind of payments

on the right kind of loan

while you are in the right kind of job

repeat 120 times

prove it

Career Public Defender $100,000 Eligible Debt

Initial PI AGI: $40K

IBR Monthly Payment

30 Year Fixed Monthly

10 Year Fixed (Affordable?)

Year 1: $40,000 $297 $696 $1184Year 2: $41,200 $306 $696 $1184Year 3: $42,436 $315 $696 $1184Year 4: $43,709 $324 $696 $1184Year 5: $45,020 $334 $696 $1184Year 6: $46,371 $344 $696 $1184Year 7: $47,762 $355 $696 $1184Year 8: $49,195 $365 $696 $1184Year 9: $50,671 $376 $696 $1184Year 10: $52,190 $387 $696 $1184Years 11-30: ... $0 $696 $0

Total Paid IBR: $40,849 Total Forgiven: $133,69610 Year Fixed: $142,15830 Year Fixed: $250, 598

The right kind of job

full-timepaid work

Government 501(c)(3) Non-profit

AmeriCorps Position

Peace Corps

Public Service

Organization

Government

Local State Federal

TribalGovernment organization

sGovernment

entities

Government agencies

Government contractors

Full-time

30 hours

the right kind of job

?

The right kind of loan

Federal Direct Loans ONLY

Federal

Loans

Grad PLUS

Unsubsidized Stafford

Federal Consolidatio

n

Subsidized Stafford

FFEL

Federal

Direct

Federal

Student

Loans

www.nslds.ed.gov

ONLY FEDERAL DIRECT

Eligible Loans for Public Service Loan Forgiveness

FFEL loans MUST be consolidated into federal direct

http://loanconsolidation.ed.gov/

http://loanconsolidation.ed.gov/

www.studentloanborrowerassistance.org

the right kind of loan

?

The right kind of payments

Income-Based Repayment

IBR Monthly Payment Amount

Source: United States Department of Education

AGIFamily Size

1 2 3 4 5 6 7$10,000 $0 $0 $0 $0 $0 $0 $0$15,000 $0 $0 $0 $0 $0 $0 $0$20,000 $47 $0 $0 $0 $0 $0 $0$25,000 $109 $39 $0 $0 $0 $0 $0$30,000 $172 $102 $32 $0 $0 $0 $0$35,000 $234 $164 $94 $24 $0 $0 $0$40,000 $297 $227 $157 $87 $16 $0 $0$45,000 $359 $289 $219 $149 $79 $9 $0$50,000 $422 $352 $282 $212 $141 $71 $1$55,000 $484 $414 $344 $274 $204 $134 $64$60,000 $547 $477 $407 $337 $266 $196 $126$65,000 $609 $539 $469 $399 $329 $259 $189$70,000 $672 $602 $532 $462 $391 $321 $251

Income-Based Repayment

Owe more than you earn?

www.finaid.org/calculators/ibr.phtml

Income-Based Repayment

Adjusted Gross Income

Individual or married filing separately tax filing status

Your

AGIIBR AGI

Married filing jointly

Joint

AGIIBR AGI

www.gladvisor.com

Repeat 120 times

on time paymentsonce a month for 10-years

Prove it

apply for forgiveness

Remember these 5 steps:

1. Make the right kind of payments,2. on the right kind of loans,3. while you are in the right kind of job. 4. Repeat 120 times.5. Prove it.